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The Consumer Protection Act, 1986

The law relating to consumer protection is contained in the

consumer protection Act ,1986.The Act applies to all goods and services
.The central government may however by notification published in the
official Gazette exempt any goods or services(sec.1).

Objectives of the Act

The objects of the Act are as follows:

1. Better protection of interests of consumers: The Act seeks to

provide for better protection of the interests of consumer’s .For that
purpose, the Act makes provision for the establishment of consumer
councils and other authorities for the settlement of consumer disputes
and for matter connected therewith (Preamble to the Act).

2. Protection of rights of consumers: The Act seeks, inter alia, to

promote and protect the rights of consumers such as-
a) The right to be protected against marketing of goods or services
which are hazardous to life and property;

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b) The right to be informed about the quality, quantity, potency,

purity, standard and price of goods or services so as to protect the
consumers against unfair trade practices;

c) The right to be assured, where ever possible, access to goods and

services at competitive prices;

d) The right to be heard and to be assured that consumers interest

will receive due consideration at appropriate forums;

e) The right to seek redresses against unfair trade practices or

restrictive trade practices or unscrupulous exploitation of consumers;

f) Right to consumer education

3. Consumer protection councils: The objects are sought to be

promoted and protected by the consumer protection councils established
at the central and state levels.

4.Quasi-judicial machinery for speedy redressal of consumer

disputes .The Act seeks to provide speedy and simple redressal to
consumer disputes .For this purpose , there has been set up a quasi-
judicial machinery at the district ,State and central levels .These quasi-
judicial bodies are supposed to observe the principles of natural justice
and are empowered –
a) To give relief’s of a specific nature , and
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b) To award, wherever appropriate, compensation to consumer.

Penalties for non-compliance of the orders given by the quasi-judicial

bodies have also been provided.

Restrictive trade practices [2 (1) (nnn)]

It means a trade practice which tends to bring about manipulation

of price or its conditions of delivery or to affect flow of supplies in the
market relating to goods or services in such a manner as to impose on
the consumer unjustified costs or restrictions and shall include-
• Delay beyond the period agreed to by the trader in supply of such
goods or in providing the services which has led or is likely to
lead to rise in the price;
• Any trade practice which requires a consumer to buy, hire or avail
of any goods or, as the case may be, services as condition
precedent to buying, hiring or availing of goods or services.

Unfair trade practices [sec. 2(1) (r) ]

It means trade practices which trade, for the purpose of promoting
the sale, use or supply of nay goods or for the provision of any service,
adopts any unfair method or unfair or deceptive practice. It includes any
of the following practices namely:-

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• The practice of making any statement, whether orally or in

writing or by visible representation which-
1. That falsely represents that the goods are of particular
standard, quality, quantity, grade, composition, style or
model;
2. Falsely represents that the service are of particular
standard, quality or grade;
3. Falsely represents any rebuilt, second hand, renovated,
reconditioned or old goods as new goods;
4. Represents that the goods or services have sponsorship,
approval, performance, characteristic, accessories, uses or
benefits which such goods or services do not have;
5. Represents that the seller or the supplier has sponsorship or
approval or affiliation which such seller or supplier does
not have;
6. Make a false or misleading representation concerning the
needs for , or the usefulness of, any goods or services;
7. Gives to the public any warranty or guarantee of the
performance, efficacy or length of life of a product or of
any goods that is not based on an adequate or proper test
thereof.
Where a defense is raised to the effect such that warranty
or guarantee is based on adequate or poor test, the burden
of proof of such defense shall lie on the person raising such
defense.

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8. Makes to the public a representation in a form that supports

to be (a) a warranty or guarantee of a product or of any
goods or services; or (b) a promise to replace , maintain or
repair an article or any part thereof or to repeat or continue
a service until it has achieved a specified result, if such
purported warranty or guarantee or promise is materially
misleading or if there is no reasonable prospect that such
warranty, guarantee, or promise will not be carried out;
9. Materially misleading the public concerning the price at
which a product or like products or goods or services, have
been or are ordinarily sold or provided. For this purpose, a
representation as to price shall be deemed to refer to the
price at which the product or goods or services has or have
been sold by seller or provided by supplier generally in the
relevant market unless it is clearly specified to be the price
at which product has been sold or services has been
provided by the person by whom or on whose behalf the
representation is made;
10. Give false or misleading facts disparaging the goods,
services or trade of another person.
A statement shall deemed to be a statement made to the
public by, and only by, the person who had caused the
statement to be so expressed , made or contained if the
statement is-
♦ Expressed of an article offered or displayed for sale, or
its wrapper or container; or
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♦ Expressed on anything attached to , inserted in, or

accompanying an article offered or displayed for sale, or
on anything on which the article is mounted for display
for sale; or
♦ Contained in or on anything that is sold, sent, delivered
or transmitted , or in any other manner whatsoever made
available to a member of the public.

• Permits the publication of any advertisement whether in any

newspaper or otherwise, for the sale or supply at a bargain price,
of goods or services that are not intended to be offered for sale or
supply at the bargain price, or for a period that is, and in
quantities that are, reasonable, having regards to the nature of
market in which the business is carried on, the nature and the size
of the business, and the nature of the advertisement.

Bargaining price means

a) A price that is stated in any advertisement to be a bargain price,
by reference to any ordinary price or otherwise, or
b) A price that a person who reads, hears or sees the advertisement,
would reasonably understand to be a bargain price having regards
to the prices at which the product advertised or like products are
ordinarily sold;

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• Permits-
a) The offering of the gifts, prizes or other items with the intension
of not providing them as offered or creating impression that
something is being given or offered free of charge when it is fully
or partly covered by the amount charged in the transaction as a
whole;
b) The conduct of any contest, lottery, game of chance or skills for
the purpose of promoting directly the sale, use or supply of any
product or any business interest;

(3A) with holding from the participants of any scheme offering gifts,
prizes or other items free of charge, on its closure the information
about final result of the scheme. The participants of a scheme shall
be deemed to have been informed of the final results of the scheme
where such results are within a reasonable time published
prominently in the same news paper in which the scheme was
originally advertised.

4) Permits the sale or supply of goods intended to be used, or are a

kind likely to be used, by consumers, knowing or having reasons to
believe that the goods do not comply with the standards prescribed
by the competent authority relating to performance, composition,
contents, design, constructions, finishing or packaging as are
necessary to prevent or reduce the risk of injury to the person using
the goods;

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5) permits the hoarding or destruction of goods, or refuses to sell the

goods or to make them available for sale or to provide any service, if
such hoarding or destruction or refusal raises or tends to raise or is
intended to raise, the cost of those or other similar goods or services;

6) Manufacturing of spurious goods or offering such goods for sale

or adopting deceptive practices in the provision of services.
[This clause has been inserted by the consumer protection
(amendment) act 2002]

DEFICIENCY IN SERVICE

Meaning

Section 2(1) (g) of the Act provides that, “deficiency” means any
fault, imperfection, shortcoming or inadequacy in the quality, nature and
manner of performance which is required to be maintained by or under

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any law for the time being in force or has been undertaken to be
performed by a person in pursuance of a contract or otherwise in
relation to any service.

From this definition it can be said that

(i) “Deficiency” means any fault, imperfection, shortcoming or

inadequacy in the quality, nature and manner of performance

(ii) Such quality and manner of performance of service should have

been required to be maintained by or under any law for the time being in
force or undertaken to be performed by a person in pursuance of a
contract or otherwise.

(iii) The deficiency must be in relation to a service

Deficiency in service due to circumstances beyond control - In

normal course, if the service is found deficient as per the above criteria,
it is held deficient and the compensation is awarded. However there may
be abnormal circumstances beyond the control of the person performing
service. If such circumstances prevent a person from rendering service
of the desired quality, nature and the manner, such person should not be
penalized for the same.

Passengers in the airlines are also consumers under the Consumer

Protection Act and if there is any deficiency in the service the passenger
can sue the airlines under the Act. The onus of proof is on the passenger
and he must prove that he has suffered loss, monetory or
psychological. .
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The following rights have been recognized under the Consumer

Protection Act and it has been held by the Courts that incase of delay of
flights and other related subsequent problems like deficiency of service
or non availability of an alternative flight, the passenger is entitled to
compensation under the Consumer protection Act2.

Examples
Delay caused in returning of baggage or tampering with baggage:
A delay in returning baggage or tampering it amounts to a deficiency of
the services by the airline. The aggrieved party is entitled to claim
damages on the grounds that there was a deficiency in services and also
any loss suffered by him due to the tampering of the baggage.
Failure in informing the unavailability of a connecting flight: The failure
on the part of an airline to inform a passenger of the non-availability of
a connecting flight due to which the passenger has to spend long hours
at the connecting point without any justification would amount to
deficiency in services. The airlines will have pay compensation for the
mental agony suffered.
Failure to inform with regard to change in flight timings: The failure on
the part of an airline to intimate the passengers of any change in flight
timings would amount to deficiency for which the airline is liable to pay
compensation. The airline also has to pay all the costs that have been
incurred by the passengers due to the changed circumstances.
The most common problem faced by the air passengers is delay of
flights and subsequent cancellation of flights. Many of the airline
companies in India do not have a sufficient number of planes to cover
their schedules and the airline companies that are having adequate
number of airbuses have older and obsolete aircrafts. All this often

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results in routine cancellation of flights. Such problems leave the

passengers frazzled and frustrated and the poor facilities provided at the
airports render their condition even more pathetic. The consumer has all
the right to sue the airline for the deficiency in service. The act of not
providing a seat in an aircraft when the ticket has been confirmed earlier
amounts to deficiency in service as held by National Consumer Forum3.
It was also held in this case that if the airlines make the booking for the
entire journey then they shall be made liable to compensate the
passenger if the passenger is not able to make the onward journey on a
connecting flight belonging to a different airline. It was held so, because
the airlines were acting as the ‘agent’ of the principal carrier.
Justice J. D. Kapoor while commenting on the plight of the
passengers rightly remarked, “they (poor facilities provided by airlines)
cause enormous mental agony, harassment and physical discomfort
which are not assessable in terms of money". With the emerging
competition in the sector the consumer rights violation is also increasing
day by day. There is an emergent need of protection of consumer rights
against the poor and pitiable services.

The National Consumer Disputes Redressal Forum in a case

rightly held that where there was a delay in returning the luggage of the
passenger and the luggage was tampered and valuables were missing,
the forum ordered the Airlines to pay compensation of Rs 10000 on
account of its negligence.4In the case of Express Travels v. M.R. Shah
and Ors5, the National Consumer disputes redressal Commission held
that departure of flight before the schedule time of departure from Delhi
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to Kulu and cancellation of the return flight without giving any

intimation to the complainant resulted in deficiency of service.
In another pertinent case where due to the flight delay, an urgent
consignment was delayed when it was expressly stated and instructed by
the respondent that the consignment was to be delivered on a particular
date and the transporting corporation had acknowledged these
instructions, the flight corporation was liable under the Consumer
Protection Act and was required to pay the compensation and the
insurance amount as it amounted to ‘deficiency of services’.6 The state
commission held that the complainant was a consumer under the Act
and was entitled to efficient services. In a similar case of delay in
delivery of consignment due to negligence by Airlines resulting in loss
to passenger, the airline was held liable by the National Consumer
commission and was directed to pay compensation.7

In another important judgment8, failure to intimate the changed

departure time of its flight from Delhi to Jodhpur, to the passenger
resulted in’ deficiency of service’ and the Airlines was ordered to pay
damages amounting to Rs 11,000.The forum held that, “Though the
company ,Indian Airlines reserves its right to cancel or reschedule the
flight without assigning any reason to cancel or reschedule it is its
bounding duty to inform each passenger about this well in advance so as
to enable him to make alternative arrangement to fly. With this object in
view, all Airlines including Indian Airlines, secure the contact telephone
number while issuing tickets. In this case, neither the Indian Airlines
secured the telephone number nor informed about the cancellation of the
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flight to him. Hence, this resulted in’ deficiency of service’ by Indian

Airlines as defined under section 2(g) the Consumer Protection Act.

In situations where the flight delays have been due to technical

faults and the Airline has been unable to provide an alternative flight,
the Courts have held that the passenger is entitled to compensation9. In
the instant case, respondent Bhola Shankar along with two members of
his family purchased tickets from the appellant for undertaking journey
covering New Delhi-London-Boston-London-New Delhi but due to
delay in the flight because of technical problems, they missed the
connecting flight and had to take another flight from Mumbai to Delhi
by incurring extra expenses and undergoing hardship and
inconvenience. Apart from this the respondent also accused the
appellant for being deficient in service in as much as that no vegetarian
food was served and since the wife of the respondent was a chronic
diabetic patient, she became restless at night whereby her health
deteriorated as the sugar level aggravated and no medicine was provided
to her. The National Commission held that the providers of air services
have to remain always on tenterhooks and see that the flights fly at the
scheduled time as the consumers traveling abroad to various countries
purchase tickets of connecting flight that may have a gap of two to three
hours and if there is any delay the amount of hardship and miseries the
consumer undergoes is immense10. The airways were thus, ordered to
pay a compensation of Rs.30, 000/- besides Rs.10, 000/- as cost of
litigation to meet the ends of justice. In a similar case of delay of an
International flight, Alitalis Airlines, to US by three hours, the State
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consumer Redressal commission had ordered the Airline to pay

compensation for deficiency in service.
In a startling case, where glass particles were found embedded in
the packed airline food, the Airlines was held liable for deficiency of
service by the National Consumer forum12. In this case the passengers
were travelling from Amsterdam to Frankfurt and when the afternoon
meal was served, they found some hard glass material in the food while
they started chewing the meal. They subsequently lodged a complaint
sought for replacement of the food trays, but they were told that no extra
meal trays were available. Consequently, the complainants had to
remain without food throughout the remaining flight. The forum held
that the Airlines had failed miserably to perform its duties and render
the services on board. The Airlines have also been held liable to pay
damages for breach of contract under the Indian Contract Act .Section
73 of the Act provides for compensation or damages for breach of
contract. In a particular case of delay of flight to Amsterdam by six
hours and then the passenger thereafter being stranded at another airport
due to non availability of parking space at the authorized airport, the
Passenger was held to be entitled to damages by Hon’ble Justice Desh
Bandhu for breach of contract under Section 73 of the Indian Contract
Act for deficiency of service, loss of business, mental agony, tension
and anguish.13

Conclusion
Thus, after observing the continuing trend of poor aviation services
in India, it can be inferred that the Passengers can enforce their rights
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against the defaulting Airlines as they are legitimate consumers of

services and they are entitled to compensation if their ‘Right to Fly’ in
peace is violated or disturbed. The need for awareness of the consumer
rights to the masses would prove to be an asset against such poor
services provided by the airlines. It is thus imperative that the aviation
industry as well as the government agencies especially the aviation
ministry and DIAL to promote consumer rights in India in regards to
flight delays, flight cancellations, poor quality of food, tampering & loss
of luggage and other inconveniences caused to the public. The
awareness would only help in promoting better facilities and raise
standards of the Indian aviation industry and subsequently result in
better services being offered by the Aviation players. Along with the
judiciary, the government also needs to take desperate measures to
increase the accountability of these Airlines in order to make them more
consumers sensitive. Only a pro active approach can lead to a decline in
abuse of consumer rights.

CONSUMER DISPUTES REDRESSAL AGENCIES

(Sec 9 to 27)

Establishment of Consumer Disputes Redressal Agencies (Sec. 9)

There shall be established for the purposes of this Act, the following
agencies, namely:-

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(a) A Consumer Disputes Redressal Forum to be known as the "District

Forum" established by the State Government in each district of the State
by notification. The State Government may, if it deems fit, establish
more than one District Forum in a district.

(b) A Consumer Disputes Redressal Commission to be known as the

"State Commission" established by the State Government in the State by
notification; and

(c) A National Consumer Disputes Redressal Commission established

by the Central Government by notification.

CONSUMER DISPUTES REDRESSAL FORUM

(The District Forum- Secs. 10 to 15)

Composition (Sec. 10). Each District Forum shall consist of-

(a) A person who is, or has been, or is qualified to be a District Judge,

who shall be its President;

(b) Two other members, one of whom shall be a woman, who shall have
the following qualifications, namely :--

(i). be not less than 35 years of age,

(ii). possess a bachelor’s degree from a recognized university,

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(iii). be persons of ability, integrity and standing, and have

adequate knowledge and experience of at least 10 years in
dealing with, problems relating to economics, law,
commerce, accountancy, industry, public affairs or
administration:

Further a person shall be disqualified for appointment as a member, if he

—

a) has been convicted and sentenced to imprisonment for an

offence which, in the opinion of the State Government,
involves moral turpitude; or

b) is an undischarged insolvent; or

c) is of unsound mind and stands so declared by a competent

court; or

d) has been removed or dismissed from the service of the

Government or a body corporate or controlled by the
Government ; or

e) has, in the opinion of the State Government, such financial

other interest as is likely to effect prejudicially the
discharge by him of his functions as a member; or

f) has such other disqualifications as maybe prescribed by the

State Government. [This clause has been substituted by
Consumer Protections (amendment) Act, 2002].

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Appointment on the recommendation of Selection Committee

Every appointment shall be made by the State Government on the

recommendation of a Selection Committee consisting of the following,
mainly:

(i). President of the State Commission—Chairman.

(ii). Secretary, Law Department of the State—Member.

(iii). Secretary in charge of the department dealing with Consumer

Affairs in the State—Member.

Where the president of the state commission is, by reason of

absence or otherwise, unable to act as Chairman of the selection
Committee, the State Government may refer the matter to the Chief
Justice of the High Court for nominating a sitting Judge of that High
Court as a Chairman.
Term of Office

Every member of the District Forum shall hold office for a term of five
years or up to the age of 65 years, whichever is earlier, and shall not be
eligible for re-appointment. However, a member shall be eligible for re-
appointment for another term of 5 years or up to a age of 65 years,
whichever is earlier, subject to the conditions that he fulfills the
qualifications and other conditions for appointment and such re-

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appointment is also made on the basis of the recommendation of the

Selection Committee.

Resignation

A member may resign his office in writing under his hand addressed to
the State Government and on such resignation being accepted, his office
shall become vacant and may be filled by the appointment of a person
possessing any of the qualifications mentioned above in relation to the
category of the member who has resigned.

Salary and terms of condition of service

The salary or honorarium and other allowances payable to, and the other
terms and conditions of service of, the members of the District Forum
shall be prescribed by the State Government. However the appointment
of a member on whole time basis shall be made by the State
Government on the recommendation of the President of the State
Commission taking into consideration such factors as may be prescribed
including the work-load of the District Forum. [Inserted by the
Consumer Protection (Amendment) Act, 2002].

Jurisdiction (Sec. 11)

The District Forum shall have jurisdiction to entertain complaints where

the value of the goods or services and the compensation, if any, claimed
does not exceed Rs. 20,00,000. This is however subject to other
provisions of the Act.

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A complaint shall be instituted in a District Forum within the local

limits of whose jurisdiction-

a) the opposite party (i.e., the person who answers complaint or

claim) or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, actually and
voluntarily resides or personally works for gain; or

b) any of the opposite parties, where there are more than one, at the
time of the institution of the complaint, actually and voluntarily
resides, or carries on business or has a branch office, or
personally works for gain. But in such a case either the
permission of the District Forum is given, or the opposite parties
who do not reside, or opposite parties who do not reside, or carry
on business or have a branch office, or personally work for gain,
as the case may be, acquiesce in such institution; or

c) the cause of action, wholly or in part, arises.

Manner in which complaint shall be made (Sec. 12)

A complaint in relation to any goods sold or delivered or agreed to be
sold or delivered or any service provided or agreed to be provided, may
be filed with a District Forum, by-

a) the consumer to whom such goods are sold or delivered or agreed

to be sold or delivered or such service provided or agreed to be
provided;

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b) any recognized consumers association whether the consumer to

whom the goods sold or delivered or service provided or agreed
to be provided, is a member of such association or not; or

c) one or more consumers, where there are numerous consumers

having the same interest, with the permission of the District
Forum, on behalf of, or for the benefit of, all consumers so
interested; or

d) the Central or the State Government, as the case may be, either in
its individual capacity or as a representative of interests of the
consumer in general.

Every consumer shall be accompanied with such amount of fee

payable in such manner as may be prescribed.

On receipt of a complaint, the District Forum may, by order, allow

the complaint to be proceeded with or rejected. However, a complaint
shall not be rejected unless an opportunity of being heard has been given
to the complainant.

The admissibility of the complaint shall ordinarily be decided within

21 days from the date on which the complaint was received.

Where a complaint is allowed to be proceeded with, the District

Forum may proceed with the complaint in the manner provided under
this Act. However, where a complaint has been admitted by the District

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Forum, it shall not be transferred to any other court or tribunal or any

authority set up by or under any other law for the time being in force.

Procedure on admission of complaint [Sec. 13]

Complaint relating to goods:

a) Reference of complaint to opposite party. The District Forum

shall, on admission of a complaint, if it relates to any goods-refer

a copy of the complaint to the opposite party mentioned in the
complaint directing him to give his version of the case within a
period of thirty days. This period may be extended by a further
period not exceeding fifteen days as may be granted by the
District Forum;

b) Denial of allegation etc. by opposite party. Where the opposite

party on receipt of a complaint referred to him denies or disputes

the allegations contained in the complaint, or omits or fails to
take any action to represent his case within the time given by the
District Forum, the District Forum shall proceed to settle the
consumer dispute in the manner :

1) Reference of sample to laboratory where the compliant

alleges a defect in the goods which cannot be determined

without proper analysis or test of the goods. In such a case
the District Forum shall obtain a sample of the goods from
the complainant, seal it and authenticate it and refer the

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sample so sealed to the appropriate laboratory for an

analysis or test whichever may be necessary. The direction
for such analysis or test may be made with a view to
finding out whether such goods suffer from any defect
alleged in the complaint or suffer from any other defect
and to report its findings thereon to the District Forum
within a period of forty-five days of the receipt of the
reference or within such extended period as may be
granted by the District Forum;

2) Deposit of fees. Before any sample of the goods is referred

to any appropriate laboratory for analysis or test, the

District Forum may require the complainant to deposit to
the credit of the Forum such fees as may be specified. Such
fees are meant for payment to the appropriate laboratory
for carrying out the necessary analysis or test in relation to
the goods in question;

3) Remission of fees to laboratory and forwarding of report

to the opposite party. The District Forum shall remit the

amount deposited to its credit to the appropriate laboratory
to enable it to carry out the analysis or test. On receipt of
the report from the appropriate laboratory, the District
Forum shall forward a copy of the report along with such
remarks as the District Forum may feel appropriate to the
opposite party;

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4) Objectives by any of the parties. If any of the parties

disputes the correctness of the findings of the appropriate

laboratory, or disputes the correctness of the methods of
analysis or test adopted by the appropriate laboratory, the
District Forum shall require the opposite party or the
complainant to submit in writing his objections in regard to
the report made by the appropriate laboratory;

5) Reasonable opportunity to parties of being heard and

issue of order. The District Forum shall thereafter give a

reasonable opportunity to the complainant as well as the
opposite party of being heard as to the correctness or
otherwise of the report made by the appropriate laboratory
and also as to the objection made in relation thereto.
Thereafter, it shall issue an appropriate order under section
14.

Complaint relating to services

Reference of claim to opposite party. If the complaint admitted by the

District Forum relates to any services (or goods in respect of which the
procedure specified above cannot be followed), the District Forum shall
refer a copy of such complaint to the opposite party directing him to
give his version of the case within a period of 30 days or such extended
period not exceeding 15 days as may be granted by the District Forum.

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Denial etc. of allegation by the opposite party. The opposite party may,
on receipt of a copy of the complaint, deny or dispute the allegations
contained in the complaint, or omit or fail to take any action to represent
his case within the time given by the District Forum.

Settlement of dispute. In case of denial etc. of the allegation by the

opposite party, the District Forum shall proceed to settle the consumer
dispute—

1) Ex parte on the basis of evidence brought to its notice by the

complainant and the opposite party, where the opposite party

denies or disputes the allegations contained in the complaint, or

2) Ex parte on the basis of evidence brought to its notice by the

complainant where the opposite party omits or fails to take any

action to represent his case within the time given by the Forum.

3) Where the complainant fails to appear on the date of hearing

before the District Forum may either dismiss the complaint for
default or decide it on merits.

Proceedings of the District Forum final. The proceedings complying

with the procedure laid down above cannot be called in question in any
Court on the ground that the principles of natural justice have not been
complied with.

Death of a complainant. In the event of death of a complainant who is a

consumer or of the opposite party against whom the complainant has
been filed, the provisions of Order XXII of the subject to the
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modification that every reference therein to the plaintiff and the

defendant shall be construed as reference to a complainant or the
opposite party, as the case may be.

Period. Every complaint shall be heard as expeditiously as possible and

endeavor shall be made to decide the complaint within a period of 3
months from the date of receipt of notice by opposite party.

COMPLAINTS

A complaint is any allegation in writing made by a complainant that, an

“unfair trade practice” or a “restrictive trade practice” has been adopted
by any trader.

A complaint must be made with a view to obtaining any relief provided

under the Act (sec.2 (1) ©).

WHO CAN FILE A COMPLAINT?

The following can file a complaint under the Act:-

A consumer:

Who is a Consumer?

All of us are consumers of goods and services. A Consumer under the

Act is:" One who buys any goods, hires and service/services for a

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consideration which has been paid or promised or partly paid and partly
paid and partly promised under any system of deferred payment."

To file a complaint before The District Consumer Disputes Redressal

Forum under the Provisions of "The Consumer Protection Act, 1986"

Any consumer of the State can file a complaint before the concerned
District Consumer Disputes Redressal forum, as prescribed below:- Any
voluntary consumer organization registered under the Societies
Registration Act, 1860 or under the Companies Act, 1956 or under any
other law for the time being in force.

A complaint can be made by

A consumer for himself and/or for his beneficiary including parents,

guardians for minors' wards, and children for parents etc. For the
purpose of services, a consumer means a person belonging to the
following categories:
i) one who hires or avails of any service or services for a consideration,
which has been paid or promised or partly paid and partly promised.
ii) It includes any beneficiary of such services other than the one who
actually hires or avails of the service for consideration and such services
are availed.
iii) Any voluntary consumer association registered under the Companies
Act or any other law for the time being in force.

iv) Class action complaints - one or more consumers, where there are
numerous consumers having the same interest.

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v) The Central Government

vi) The State Government or Union Territory Administrations.

WHAT CONSTITUTES A COMPLAINT?

Under the Act, a complaint means any allegation in writing made by a

complainant in regard to one or more of the following:- Any unfair trade
practice as defined in the Act or restrictive trade practices like tie-up
sales adopted by any trader one or more defects in goods. The goods
hazardous to life and safety, when used, are being offered for sale to
public in contravention of provisions of any law for the time being in
force.

Deficiencies in services

A trader charging excess of price that is fixed by or under any law for
the time being in force or displayed on goods, or displayed on any
packet containing such good.

Where to file consumer complaint

Consumer complaint can be filed in any of the following courts:

District Consumer Disputes Redressal Forum (DCDRF)

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State Consumer Disputes Redressal Commission (SCDRC)

National Conumer Disputes Redressal Commission (NCDRC)

The choice of court will depend on the amount of transaction and

relief you seek and the location where the cause of action arises.

If transaction and relief is Rs. 20 Lakhs or below, case is filed in

DCDRF

If amount is more than Rs. 20 Lakhs but below Rs. 1 Crore, case is filed
in SCDRC

If amount is Rs. 1 Crore and above, case is filed at NCDRC

The case is filed in the city / state where the Opposite Party resides, has
registered office, branch, or works for gain. The case can also be filed in
the city / state where the cause of action has occurred.

If the cost of goods or services and compensation asked for is up

to rupees five lakhs, then the complaint can be filed in the District
Forum, which has been notified by the State Government for the district
where the cause of action has arisen or where the opposite party resides.
A complaint can also be filed at a place where the branch office of the
opposite party is located. If the cost of goods or services and
compensation asked for is more than rupees five lakhs, but less than
rupees twenty lakhs then the complaint can be filed before the State
Commission notified by the State Government or Union Territory
Concerned. If the cost of goods or services and compensation asked for
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exceed rupees twenty lakhs then the complaint can be filed before the
National Commission at New Delhi.

When can a Complaint be Field?

Under the Act, a complaint can be made in writing in the following

circumstances.

i. If you have suffered loss or damage as a result of any unfair trade

practices adopted by the trader.

ii. If the goods purchased suffer from any defect.

iii. If the services hired/availed suffer from deficiencies in any respect.

iv. If your have been charged a price in excess of the prices displayed or
fixed by or under any law or the time being in force.

General Procedure of Consumer Complaint

1. Send a notice to the Opposite Party giving him time limit to settle
your grievance.

2. Prepare the consumer complaint in the required format (as also given
in this web-site)

3. Get the complaint affidavit notarized through a notary.

4. Make required number of photocopies after notarizing.

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5. Prepare a bank draft from a nationalized bank to pay court fee.

6. Submit the complaint and court fee to the receiving clerk in the
consumer court who will give you the date for admission hearing and
complaint reference number number.

7. On admission hearing, you would be informed whether your case is

fit for acceptance or not. If accepted, you will be given the date for next
hearing.

8. The court will send a notice with your complaint copy to the opposite
party seeking reply within 30 days, and asking him to attend the hearing.

9. The hearings will continue till the matter is decided

10. The courts final order will be sent to all the parties by registered
post.

How to File a Complaint?

i. There is no fee for filing a complaint. Even an affidavit does not need
stamp papers. A complaint can be sent by post or presented in person by
the complainant or his authorized agent.

ii. Usually the Forums require 3-5 copies of a complaint.

Contents of a Complaint

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A complaint should contain the following information:

i. Name and complete address of complainant.

ii. Name and complete address of the opposite party or parties as the
case may be.

iii. Date of purchase/service obtained.

iv. Amount paid for consideration.

v. Item of goods with quantities/nature of service.

vi. Whether the complaint relates to unfair trade practice/defective

goods/ efficient service/charging excess price.

vii. Copies of bills/vouchers/ receipts and copies of correspondence

made, if any.

viii. The relief sought-whether removal, replacement or compensation,

LM.

Time frame within which a complaint can be filed

Section 24A of the Act provides that a consumer dispute can be filed
within two years from the date on which the cause of action arises.

The point of time when cause of action arises is an important factor in

determining the time period available to file a complaint. There are no
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set rules to decide such time. It depends on the facts and circumstances
of each case.

Example: A house was allotted on 1-1-1999. Defects appeared in the

house on 10-1-1999. Here the cause of action will arise on 10-1-1999.

It may be noted that these time frames are not absolute limitations. If the
Consumer Forum is satisfied that there was sufficient cause for not
filing the complaint within the prescribed period, it can entertain a
complaint beyond limitation time. However the Forum must record the
reasons for condonation of delay.

How to prepare a notice

The notice may be prepared in the style given below, and sent by
registered acknowledgement-due post, courier, fax. The complainant
should retain the proof of posting.

Dated: dd-mm-yyyy

The Managing Director

ABC Engineering Works

Gala No. 22, XYZ Compound

Gandhi Nagar

Mumbai 400602

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SUB: NOTICE BEFORE FILING CONSUMER COMPLAINT

Dear Sir,

1) Give details of your purchased of product or service (cash memo

number and date).

2) Give information about the warranty or guarantee promised to you at

the time of purchase.

3) Give details of the deficiency in the product or service.

4) List the problems you are facing due to this deficiency.

5) Give the details about your efforts to inform about this grievance in
the past to which the party has not responded.

6) Give a time limit of at least 15 to 30 days to settle your grievance by

asking for refund of full amount with suitable interest (18%), or
replacement of the product along with suitable compensation, else you
will file a complaint with the Consumer Court as you are protected
under the Consumer Protection Act of 1986.

7) Inform that the consumer complaint will be at his cost and expenses,
and you will seek compensation for the mental agony caused due to his
deficiency in services.

Yours truly,

Your signature, name, and address

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The complaint should be filed within 2 years from the date of cause of
action.

Appeals are require to be filed within 30 days from the date of receipt
of the court's order.

Reference:-

1. http://www.consumerlawindia.com/aboutact/kart4.html

2. http://www.dayafterindia.com/feb109/b8.html

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3. http://www.shvoong.com/law-and-politics/794663-deficiency-

service-consumer-law/

4. http://www.consumerlawindia.com/aboutact/kart4.html

5. http://www.dayafterindia.com/feb109/b8.html

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